New Delhi: The steady increase in financially stretched borrowers, along with rising consumer indebtedness, slowing borrower growth and shrinking participation by first-time borrowers, could be the make the next phase of growth far more challenging, a TransUnion CIBIL study has found, reported Indian Express.The CIBIL report, titled Unlocking Access: Journey of Credit Expansion in India, has revealed that the share of over-leveraged consumers saw a threefold rise – from 5% in the financial year 2017 (FY17) to 18% in FY24. In FY26, it eased marginally to 15% owing to industry intervention.While younger consumers have been the fastest-growing segment of India’s retail credit market, the study reveals that the excessive borrowing is also concentrated among this same category.At the same time, the CIBIL study has said that the compounded annual growth rate of the credit-active consumer base decreased from 14% during the March 2017-March 2019 period to 9% during March 2024-March 2026 period, indicating that easy gains from financial inclusion may be tapering off.Consumption credit, which involves personal loans, credit cards and consumer durable finance has turned out to be the dominant segment. The share of active borrowers holding such products have increased from 34% to 51% over the period, the study has revealed.This latest report also reveals that vehicle loans among credit-active borrowers make up for the second largest category of credit at 18%, while bank credit remains the largest category, reported New Indian Express.“Consumer durable loans are the biggest growth drivers for the Gen Z universe. Now purchasing a mobile phone on credit is the most important factor for them. Prior to Covid, it was the two-wheeler,” said Bhavesh Jain, managing director of Transunion CIBIL.